logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Indian ETFs Fall on Widespread Corporate Reform; Plunging Rupee

  +Follow August 16, 2013 4:13PM
Share:
Tickers Mentioned:

Investors in the emerging market of India were rocked Friday, as the country plans to concomitantly rework their outdated 57-year-old corporate legislative laws and address a rapidly devaluing currency. 

India has long been plagued by corruption. Kickbacks, gift and outright fraud are commonplace, as unscrupulous players take advantage of a financial system that has failed to keep pace with an increasingly complex global economy.

In 2009, the country was rocked by a massive fraud case involving the company Satyram Computer Services. The chairman confessed to overstating company assets and earnings by over $1 billion. The scandal, often called "India's Enron," made it clear the country lacked a proper oversight body and laws sophisticated enough to deal with modern finance.

The country is simultaneously scrambling to also stabilize the rupee, which is the worst performing emerging market currency in comparison to the dollar. The Reserve Bank of India is taking action and imposing controls to increase overseas direct investments, as the diminishing value of the country’s currency has made it more difficult for Indian corporations to buy assets outside the country.

India has also had to deal with inflation and a widening current account deficit. The corporate reforms and worsening economy coupled to spook investors and trigger an ETF sell-off.

Indian ETFs across the board retreated on Aug. 16. iPath MSCI India Index (INDA) dropped 4.84 percent to hit $21.41 a share. PowerShares India ($PIN) dropped 4.64 percent to hit $15.62 a share. WisdomTree India Earnings ($EPI) fell 4.53 percent to hit $14.76 a share.

The biggest loser on the day was Direxion Daily India Bull 3X Shares ($INDL), which plummeted 12.89 percent to hit $10.72 a share amid eight times normal volume. 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for PIN
RB
24 Oct 14 13:22:42
Bubbles - India getting pricey as global growth slows? $INDY $INCO $EPI $SCIF $PIN $INDL $INP $INXX $INDA $SCIN http://t.co/29RaLfl9bw
Silly Rin PeasVcocyx
24 Oct 14 03:51:28
Hi I sighned Up 4 &USAfrooca Milootary as a Nurse unlike $pin Media I "get" $tat$ 2 True Journalism risk$ Y paydiffeRential ~CounterIntuiTVe
Street Light Curfew
23 Oct 14 18:48:46
Check out 'Money $pin' by Bryce T http://t.co/D7Y2PbQzdh #newsingle #netflix http://t.co/T4kJXCH4Hn
Reina Roberson
22 Oct 14 20:10:51
$pin ma$ta Reindawg & whoever that is throwin me in the air 🌀🌀 http://t.co/z4rR3PHLhR
Invest Up
22 Oct 14 08:23:52
Now is the time to buy Indian stocks (ETFs: $EPI $PIN $INDL). What is your view? http://t.co/5Ot8oAGH1g #Stock http://t.co/6EtN83DSl0
Myrollingstocks
22 Oct 14 08:20:28
watch for this $PIN http://t.co/BBGolEleMD
ETF Trends
21 Oct 14 17:20:23
Festival of Lights Could Light up #India ETFs http://t.co/qfvCgfA9r3 #ETF #emergingmarkets $SCIF $EPI $PIN $INDY
Tom Lydon
21 Oct 14 17:15:27
Festival of Lights Could Light up #India ETFs http://t.co/WHM5pX9t7j #ETF #emergingmarkets $SCIF $EPI $PIN $INDY
Höød Pharmaci$t
20 Oct 14 14:12:02
money make the world $pin
Stock Market Picks
20 Oct 14 07:29:47
ETFearning's Results: $PIN opened LONG on 10/16 at $20.87 and closed today's at $21.49 +2.97% http://t.co/iRR3Iz08yO $QQQ $SPY #stocks #ETFs
ghetto arab
20 Oct 14 03:58:05
RT @SstacksSs: choppa $pin his ass, no dvd 👿💥
$avage tyRichhh
20 Oct 14 03:57:29
choppa $pin his ass, no dvd 👿💥
21stCommons
19 Oct 14 05:28:26
$20 Haiku #2 First Great $pin Cycle “to victors belong the spoils” insane empire dream. http://t.co/2xmH0kNI54 Enjoy!
 Magician
17 Oct 14 14:49:47
RT @SeekingAlpha: What's Next For China And India? http://t.co/FENnkblvCA $FXI $EPI $INDY $PGJ $GXC $YINN $FXP $PIN $INDL $INP $YANG $INXX …
awolam
17 Oct 14 14:37:49
RT @SeekingAlpha: What's Next For China And India? http://t.co/FENnkblvCA $FXI $EPI $INDY $PGJ $GXC $YINN $FXP $PIN $INDL $INP $YANG $INXX …
Seeking Alpha
17 Oct 14 14:29:42
What's Next For China And India? http://t.co/FENnkblvCA $FXI $EPI $INDY $PGJ $GXC $YINN $FXP $PIN $INDL $INP $YANG $INXX $MCHI $INDA $XPP
Dwayne Membrane
17 Oct 14 11:50:13
LOL. Gilead threatened to free itself from its OpEx chain, and 12.6k shares showed up on Sell line to stop that action cold. $GILD $pin
				
				
  +Follow August 16, 2013 4:13PM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.